Multiple Choice
Which of the following statements are TRUE?
Statement I: As you increase the interest rate, the future value of an investment increases.
Statement II: As you increase the length of the investment (to receive some lump sum) , the present value of the investment increases.
Statement III: The present value of an ordinary annuity is larger than the present value of an annuity due. (all else equal)
A) Statement I only
B) Statements I and II
C) Statement II only
D) Statements I and III only
Correct Answer:
Verified
Correct Answer:
Verified
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